The taxes on smartphones imposed by the PTA have made it impossible for a common man to buy them anymore. Duties on the latest models of mobile phones are higher than even their actual prices, which has no justification at all.
The exorbitant taxes on smartphones imposed by the Pakistan Telecommunication Authority (PTA) have made it impossible for a common man to buy them anymore. Duties on the latest models of mobile phones are higher than even their actual prices, which has no justification at all.
The authorities apparently are missing the basic flaw in their approach to the matter; a smartphone in today’s world is an item of everyday need. It is not a luxury item.
The imposition of such absurdly high duties is not only barring the locals from acquiring smartphones having the latest features based on fast and easy-to-use technology, but is also irritating the visitors from abroad who keep the usage of their smartphones limited to WhatsApp and such other things because using their phones as ‘phones’ means paying taxes when they do not plan to be here for long.
The fixed tax on smartphones priced between $201 – $350 has increased from Rs. 1,750 to a whopping Rs. 14,661. Handsets costing $351 to $500 will now be taxed Rs. 23,420 and phones going above $500 will tax you Rs. 37,000 and above. Here is the full list:
- $1 to $30 = Rs. 430
- $31 to $100 = Rs. 3,200
- $101 to $200 = Rs. 9,580
- $201 to $350 = Rs. 12,200 + 17% Sales Tax
- $351 to $500 = Rs. 17,800 + 17% Sales Tax
- $501 and above = Rs. 36,870 + 17% Sales Tax
This applies to smartphones imported through your Passport ID. The taxes imposed on CNIC imports are even worse. Here is the list:
- $1 to $30 = Rs. 550
- $31 to $100 = Rs. 4,323
- $101 to $200 = Rs. 11,561
- $201 to $350 = Rs. 14,661 + 17% Sales Tax
- $351 to $500 = Rs. 23,420 + 17% Sales Tax
- $501 and above = Rs. 37,007 + 17% Sales Tax
What we can all agree on without much debate, if at all, is that the imposition of duties is not going to help promote the locally manufactured smartphones as they can never be an alternative to the cutting-edge technology available otherwise.
That being so, there is no point hindering people’s access to the latest multipurpose smartphones by imposing high taxes, especially when they are useful to those interacting with digital skills and freelancing platforms. They represent a serious source of foreign exchange earnings and, therefore, deserve to be facilitated, not discouraged. Creating hurdles in the way of those bringing in foreign exchange is helping nobody; neither the individuals nor the country.
Originally published at Pakistan Today